USD/CAD building on gains above 200-DMA, surges to 1.3100 neighborhood

The USD/CAD pair is seen building on to Friday's strong move beyond 1.3000 psychological mark and has now conquered the very important 200-SMA.

Currently trading at a fresh 6-day high level around 1.3095 area, the pair maintained its bid tone for fourth consecutive session and is now inching closer to 1.3100 round figure mark. 

Friday's release showing a minor up-tick in Canadian unemployment rate accompanied with softer tone surrounding crude oil prices have been the key factors driving the major higher. Adding to this renewed speculations of an eventual Fed rate-hike action in September and the prevalent risk-off sentiment on Monday provided an additional boost to the pair's up-move from a 2-week low level near 1.2825 region touched last week.

Going forward, Fed rate-hike talks will retain the spotlight on Monday with a scheduled speech from the Fed Governor Lael Brainard (considered as one of the most dovish FOMC members), later during US session. 

Technical levels to watch

On a sustained move above 1.3100 handle the pair is likely to make a fresh attempt to September monthly high resistance near 1.3150 region above which a fresh leg of up-move should assist the pair further towards 1.3180 resistance area.

Meanwhile on the downside, 200-day SMA resistance break point near 1.3060 region now becomes immediate support. Weakness below this immediate support is likely to be short-lived and could get bought into near 1.3000 psychological mark.